KfW Start-up Monitor 2012: Fewer start-ups in Germany

• Number of start-ups fell by 11 per cent in 2011
• Very good job market situation is dampening entrepreneurial dynamism
• Decline exclusively in start-up activity initiated on a part-time basis - number of full-time start-ups remained nearly unchanged

Around 835,000 persons set up a full-time or part-time business of their own in 2011. That is around 11 per cent fewer than the year before (2010: 936,000 start-ups). The decline is due almost exclusively to a sharp drop in start-up activity initiated on a part-time basis (2011: 443,000 persons, 2010: 540,000 persons), while the number of full-time start-ups remained nearly unchanged (2011: 392,000, 2010: 396,000). These are the first major results of this year's KfW Start-up Monitor, the annual representative survey of start-up activity in Germany.

"The very positive developments on the labour market and better earning prospects for employees dampened the incentive for start-ups initiated on a part-time basis", said Dr Axel Nawrath, Member of the Executive Board of KfW Bankengruppe. "However, it is pleasing that in contrast to this trend the number of full-time start-ups remained nearly unchanged." With strong economic growth for the second time in a row, people with good ideas now had enough confidence in the strong demand situation to risk their move into self-employment. "As a promotional bank, KfW provides tailored financing and advisory services to those willing to set up a business so that attractive business ideas can be transformed into new enterprises. That is precisely what our economy needs for its constant renewal: brave people with good ideas", said Dr Axel Nawrath.

What is likely to have made a positive impact on full-time start-up activity in 2011 were the changes to the self-employment grant provided by the Federal Employment Agency, which were announced at the start of the year and went into effect on 28 December 2011. Many start-up entrepreneurs took up their planned self-employment earlier and thus secured their grants on the older, more favourable terms. "The dampening impact of the positive labour market situation on part-time self-employment is due to the fact that the continuing increase in employees' average working hours left less time to pursue part-time self-employment", said Dr Norbert Irsch, Chief Economist of KfW Bankengruppe.

Service:
KfW Bankengruppe will present the complete results of the KfW Start-Up Monitor, a representative annual survey of start-up activities, in Berlin on 25 April 2012 at a press breakfast briefing with Dr Norbert Irsch, Chief Economist of KfW Bankengruppe. For the full version of the KfW Start-Up Monitor 2012 please go to the KfW Bankengruppe website www.kfw.de.

You will find information on KfW Bankengruppe's offers for start-ups on KfW’s homepage . Interested business start-ups also have the opportunity to get advice from KfW experts under the hotline 0800 539-90 01